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Unformatted text preview: STAKEHOLDER STAKEHOLDER MANAGEMENT Stakeholders Any group or individual who can affect or is affected by the achievement of the organization’s objectives. (Thompson, 1967) (Thompson, Primary Stakeholders Primary Stockholders Wholesalers Wholesalers Retailers Retailers MA R Employees Employees Customers Customers CORPORATION Suppliers Suppliers KE T Competitors Competitors Creditors Creditors Secondary Stakeholders General Public General Public Foreign Foreign Governments Governments Fed, State, Local Fed, State, Local Government Government CORPORATION CORPORATION Business & Support Business & Support Groups Groups NO NM AR KE T Social Activist Social Activist Groups Groups Media Media Local Local Communities Communities General Public General Public Stockholders Fed, State, Local Fed, State, Local Government Government Employees Employees Wholesalers Wholesalers Retailers Retailers CORPORATION Foreign Foreign Governments Governments Customers Customers Business & Support Business & Support Groups Groups Communities Communities Social Activist Social Activist Groups Groups Competitors Competitors Creditors Creditors Local Local Communities Communities Media Media Stakeholder Theory “Stakeholder theory suggests that Stakeholder companies are beholden not just to stockholders – but also to suppliers, customers, employees, community members, even social activists. Things have become a lot more interdependent. There are a broader range of constituents.” (Nardelli, CEO of Home Depot, 2005) (Nardelli, Stakeholder Attributes Stakeholder Attributes Power Legitimacy Urgency Social Capital Social Capital An asset that resides in relationships and is characterized by mutual goals and trust Facilitates smooth internal and external transactions and processes A Changing World A Changing World “We thought we could sit in Bentonville We Arkansas, take care of customers, take care of associates—and the world would leave us alone. It doesn’t work that way anymore.” anymore.” (WalMart CEO Lee Scott) CONSUMERISM CONSUMERISM The movement to protect consumers from The an imbalance of power with business and to maximize consumer welfare in the marketplace. marketplace. Consumer Bill of Rights Consumer Bill of Rights 1) The right to safety 2) The right to be informed 3) The right to choose 4) The right to be heard 5) The right to seek redress 6) The right to privacy Consumer Product Consumer Product Safety Commission Develops voluntary standards with industry Issues and enforces mandatory standards Recalls products or arranges for their repair Conducts research Informs and educates consumers Product Liability Definitions Product Liability Definitions Negligence: The failure to use such care as a reasonably prudent and careful person would use under similar circumstances. Foreseeability: The reasonable anticipation that harm or injury is a likely result from certain acts or omissions. Reasonable Risk Reasonable Risk The consumer: understands that a risk is associated with the product understands the probability of an injury understands the potential severity of the injury understands how to cope with the risk voluntarily accepts the risk to get the benefits of the product Perceived Risks Perceived Risks Activity/ League of Women 1 College students 1 Motor vehicles 2 5 1 Handguns 3 2 4 Smoking 4 3 2 Motorcycles 5 6 6 Alcoholic beverages 6 7 3 General aviation 7 15 12 Police work 8 8 17 Pesticides 9 4 8 Surgery 10 11 5 Firefighting 11 10 18 Technology Nuclear power Experts 20 Advertising Advertising American Association of American Association of Advertising Agencies Will not knowingly create advertising that contains: False or misleading statements or exaggerations, visual or verbal Testimonials that do not reflect the real opinion of the individual(s) involved Misleading price claims Claims that distort the true meaning or practicable application of statements made by professional or scientific authority Statements, suggestions, or pictures offensive to public decency or minority segments of the population Business Responses Business Responses to Consumerism Total quality management Total Voluntary industry codes of conduct Voluntary Consumer affairs departments Consumer Product recalls Product ...
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This document was uploaded on 10/26/2011 for the course ETHICS 390 at BYU.

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